Bitcoin Trader Sentiment Returns To Greed As BTC Jumps Past $25,000

Data shows the Bitcoin market sentiment has turned to greed again as the cryptocurrency price has sharply risen above the $25,000 level. Bitcoin Fear And Greed Index Is Pointing At Greed Once Again The “fear and greed index” is an indicator created by Alternative that tells us about the general sentiment among traders in the [...]

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Bitcoin Investors Turn Greedy For First Time Since March 2022

Data shows investors in the Bitcoin market have turned greedy for the first time since March 2022, after what was the longest stretch of fear ever. Bitcoin Fear And Greed Index Now Points At “Greed” The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin (as well as the wider crypto) market. To represent this sentiment, the metric uses a numeric scale that runs from 0-100. All values below 50 imply a fearful market, while those above this threshold suggest greedy holders. Although this cutoff point might look clean in theory, in practice, the region between values of 46 and 54 is generally considered to belong to a “neutral” sentiment. Real breakouts towards fear or greed only take place when the metric crosses below or above this transition region. There are also two other “special” sentiments: extreme greed and extreme fear. The former occurs above values of 75, while the latter happens under values of 25. The significance of these extreme sentiments is that tops and bottoms have historically tended to form when the investors have held these mentalities. Because of this, some traders believe extreme fear periods provide ideal buying opportunities (as bottoms have taken place here), while times with extreme greed could be the best selling windows (since tops occur here). Related Reading: CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover A trading strategy called “contrarian investing” is based on a similar idea. As Warren Buffet said in his famous quote, “be fearful when others are greedy, and greedy when others are fearful.” Now, here is how the current sentiment among Bitcoin (and wider crypto) investors looks like: A greedy cryptocurrency sector | Source: Alternative As can be seen above, the Bitcoin fear and greed index has a value of 55 right now, suggesting that the market has now properly entered into the greed zone. Before this break into the region, the sector had been in the fear region nonstop since March 2022, around ten months ago. Related Reading: Litecoin Whale Transactions Set New 2023 High, Bullish Signal? The below chart shows how the metric’s value has changed during the past year. Looks like the metric has observed some growth in recent days | Source: Alternative From the graph, it’s visible that the indicator had spent almost the entire past year not just in the fear zone, but actually all the way down in the extreme fear region. There was only one proper spike into greed during this period, and that was the aforementioned March 2022 instance. This previous surge had only lasted for a single day before the market became fearful again. These continuous streaks of fear and extreme fear during the past year were both the longest runs in the history of the indicator. Greed finally returning to the Bitcoin market after all this while could mean that investors are ready to embrace some bullish action once again, which could be a positive sign for the current rally. BTC Price At the time of writing, Bitcoin is trading around $22,900, up 9% in the last week. The value of the asset seems to have been consolidating in recent days | Source: BTCUSD on TradingView Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, Alternative.me

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Bitcoin Fear And Greed Index Has Dipped To Lows Not Seen Since July

Following the Bitcoin crash to $42k, the fear and greed index has declined to extreme fear values not seen since July of last year. Bitcoin Fear And Greed Index Points At “Extreme Fear” As pointed out by an analyst in a CryptoQuant post, the BTC fear and greed index has dropped to very low values. The “fear and greed index” is a crypto indicator that measures the general sentiment among investors in the market. The index uses numbers to represent the sentiment on a numeric scale that goes from zero to hundred. Values of the indicator above fifty mean that the current holder sentiment is that of greed. And values below 50 imply that the market is fearful at the moment. Index values below 25 and those above 75 fall into the “extreme” category, signifying extreme fear and extreme greed, respectively. The indicator usually remains in the greed zone during bull runs. Extreme greed values have historically signaled that a correction in the price of Bitcoin may be near, and a top could form. On the other hand, values of fear may be there during bearish trends, and extreme fear might imply that a bottom could soon form. Related Reading | Bitcoin Whales Contribute 90% Of Money Inflow of Exchanges, How Can We Follow and Make Profits? Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year: The crypto fear and greed index seems to have sunk to extreme fear values | Source: CryptoQuant As you can see in the above graph, the indicator has now dipped to a value of 15. This is the lowest the metric has gone since July of the previous year. Related Reading | Start Of Bear Period? Current Bitcoin Trend Looks Similar To June Incidentally, the day in July when such low values occurred was also around when the Bitcoin price bottomed out. However, the quant in the post notes that this doesn’t necessarily mean that the current price has hit a bottom as well. Following the May crash, the months of May and June also observed similar extreme fear sentiments multiple times. So, it’s rather possible that the current low values of the indicator may persist for a while, just like back then, before the price finds its way back up. BTC Price At the time of writing, Bitcoin’s price floats around $42.4k, down 12% in the last seven days. Over the past month, the crypto has lost 16% in value. The below chart shows the trend in the price of BTC over the last five days. After the crash down to $42k a few days back, BTC's price further plunged down to $41k yesterday | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Fear and Greed Index Hits a New 17- Month High of 69

The crypto fear and greed index has reached a 17-month high, according to data from Alternative. The index currently stands at 69.  What: The Bitcoin [...]

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Does The Bitcoin Price Dump Signal The Start Of Another Bear Market?

The last two days have been especially rocky for the Bitcoin price as it has fluctuated heavily between trying for a recovery and then crashing even further. As a result of this, the price of the digital asset has revisited the $26,000 level once more and the new bearish trend may point to more decline [...]

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Bitcoin Open Interest Hits ATH As BTC Nears $100K What To Expect?

Bitcoin has shattered records again, reaching a new all-time high of $97,903 just hours ago. The cryptocurrency market is exciting as Bitcoin leads the charge, delivering explosive gains that have fueled widespread bullish sentiment. Investors and traders alike speculate this rally is far from over, with Bitcoin edging closer to the monumental $100,000 mark. Related Reading: Ethereum Consolidation Continues Charts Signal Potential Breakout Key data from Coinglass reveals another significant milestone: Bitcoins Open Interest has reached an all-time high. This surge in Open Interest indicates a flood of capital entering the market, signaling heightened activity and confidence among traders. Such metrics further confirm the euphoric state of the market, where optimism reigns supreme and momentum continues to build. With Bitcoins price rallying at an unprecedented pace and market indicators hitting record levels, the stage is set for what many believe to be an almost inevitable breakout above the psychological $100,000 level. The markets focus is whether BTC can sustain its trajectory or if a temporary pullback will precede the next leg up. Either way, the spotlight remains firmly on Bitcoin as it cements its status as the leading force in this explosive bull run. Bitcoin Greed Enters The Market  Greed has gripped the Bitcoin market, with the average Fear and Greed Index hitting 76%, signaling heightened optimism among investors. This elevated level of greed suggests that market participants are buying aggressively, anticipating that Bitcoin’s price will continue its upward trajectory without significant setbacks. Such sentiment often leads to increased speculative behavior as traders look to capitalize on the ongoing rally. Critical data from Coinglass supports this narrative, revealing that Bitcoin Open Interestrepresenting the total value of outstanding derivative contractshas reached an all-time high of $62.69 billion. This unprecedented figure highlights the speculative nature of the current market, as traders use leveraged instruments like futures to amplify their potential gains. While this fuels bullish momentum, it also adds volatility, making the market susceptible to sharp moves in either direction. Interestingly, Bitcoin’s optimistic environment starkly contrasts the broader crypto market, where altcoins continue to struggle to reclaim yearly highs. While BTC leads the charge with record-breaking performance, altcoins have yet to catch up, underscoring Bitcoins dominance during this market cycle phase. Related Reading: Solana Analyst Expects A Retrace Before It Breaks ATH Targets Revealed As speculative activity and investor optimism drive Bitcoin’s price action, the market waits to see if the rally has more fuel or if a correction looms. For now, Bitcoin remains the focal point of this euphoric bull run. BTC Enters Price Discovery Again Bitcoin is trading at $97,500 after setting a fresh all-time high, continuing its explosive rally. The market leader has entered price discoverya phase often characterized by parabolic trends like the one currently driving BTC higher. Investor anticipation is growing, with the $100,000 mark only 2.5% away. This psychological milestone could act as significant resistance, potentially holding Bitcoin down for an extended period. A consolidation phase around this level would benefit the broader market, allowing altcoins to catch up and the rally to maintain stability. However, price discovery can be unpredictable. If Bitcoin fails to reach the $100,000 mark in the coming days, the market could see a pullback as bullish momentum cools. A retrace to lower demand zones, such as the $88,500 level, would provide the market with a necessary reset before the next leg upward. Related Reading: Dogecoin Breaking Out Of Falling Wedge Pattern Analyst Reveals Target Despite the possibility of a short-term correction, Bitcoins price action remains strong. Its dominance over the crypto market and the current euphoric sentiment suggest bulls are still firmly in control. As traders and investors closely monitor price movements, Bitcoins ability to push through key psychological levels will determine the next phase of this historic rally. Featured image from Dall-E, chart from TradingView

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Bitcoin NVT Golden Cross Signals Local Bottom Whats Next?

According to the latest on-chain data, the Bitcoin Network Value to Transactions (NVT) Golden Cross has fallen into a crucial region. What could this mean for the price of the premier cryptocurrency? What Does The Falling NVT Golden Cross Mean For Price? In a recent Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Burakkesmeci revealed that the price of Bitcoin might have reached a local bottom. This exciting prognosis is based on the latest movement by the NVT Golden Cross metric. For context, the Network Value to Transactions ratio is an on-chain indicator that estimates the difference between the Bitcoin market capitalization and transaction volume. Typically, a high NVT value signals that an assets price is high compared to the networks transaction volume, suggesting that the coin is overvalued. Related Reading: BNB Price Poised for Takeoff: Will It Be The Next to Rally? Conversely, when the value of the NVT metric is low, it implies that the coins market value is small relative to the transaction volume. Usually, this indicates that the asset is undervalued and its price could still have room for upside movement. Now, the Golden Cross indicator is a modified iteration of the NVT ratio, and it helps to mark gradual buy and sell zones in short-term trends. According to Burakkesmeci explained that when the NVT GC exceeds 2.2 (the red zone), it means that the price in a short-term trend is overheating (and the formation of a potential local top). On the other hand, the NVT Golden Cross dipping below -1.6 suggests that the price decline is wearing out, signaling a potential bottom. Burakkesmeci noted that these local tops and bottoms are regions rather than just precise levels. As shown in the chart above, the NVT Golden Cross has crossed beneath -1.6 and is currently around -3.3, suggesting that the Bitcoin price is at a local bottom. According to the CryptoQuant analyst, this could represent a gradual buying opportunity for investors looking to get into the market. Bitcoin Market In Extreme Greed Investors will want to proceed with caution especially as the Bitcoin market seems to be overheating in the long term. According to another CryptoQuant analyst, the Fear & Greed Index has flagged extreme greed for the premier cryptocurrency. Typically, when the Fear & Greed Index moves toward one end, there is a potential for market reversal depending on the sentiment. In this case, where the market is in extreme greed, the Bitcoin price may be about to witness a correction. Related Reading: XRP Price Rockets Upward: Bulls Poised for More Gains As of this writing, the price of BTC sits just beneath $91,000, reflecting a 3% increase in the past day. According to CoinGecko data, the market leader is up by an impressive 19% in the last seven days. Featured image from iStock, chart from TradingView

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Bitcoin Investors Show Fear Could A Price Bottom Be Imminent?

In contrast to popular bullish sentiments, Bitcoin began October on a bearish note, recording a price decline of over 7% in the first three days of the month. However, while the BTC market experienced an uptick on Friday as data from the US Labor Department indicated incoming rate cuts, investors have generally retained a cautionary [...]

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